The rapid expansion of artificial intelligence is fueling a global shortage of memory chips, driving prices sharply higher and increasing costs for consumer electronics ranging from smartphones to laptops.

The trend is expected to be highlighted this week when Samsung Electronics reports another record-breaking quarter. Analysts forecast the world’s largest memory chipmaker will post an 18-fold increase in operating profit compared with a year ago, largely because soaring demand for AI infrastructure has outpaced the supply of memory chips.

The boom extends beyond specialized chips used to train AI models. Newer “agentic” AI systems, which perform more complex, multi-step tasks, require significantly more memory and storage, increasing demand for conventional DRAM and NAND memory used in data centers and consumer devices alike.

According to analysts, average selling prices for DRAM memory rose about 44% during the second quarter, while NAND flash memory prices climbed roughly 53%.

The rising costs are beginning to affect consumers. Samsung has already increased prices on some smartphones, and analysts say additional price hikes may be needed later this year as higher component costs squeeze profit margins. Apple also recently raised prices on select iPads and MacBooks.

Industry experts expect the memory shortage to continue into next year as technology companies race to expand AI capabilities. Samsung, along with other major memory manufacturers, has signed long-term supply agreements with customers in an effort to secure production.

The primary risk to the current surge is whether the pace of AI investment remains strong. Analysts say any slowdown in spending on AI infrastructure by major cloud computing companies could eventually ease demand for memory chips.

Source: Reuters